EFFECT OF INSURANCE AND BANKING SYSTEM IN THE CAPITAL MARKET

Auto insurance is often a sticky subject. Everyone feels like they're paying too much to insure their car, and wants to know how to get their premiums down. It's an industry that really lacks an effective way to make price comparisons, leading many people to switch every few years the way they do with credit cards or phone providers.

When you understand the factors that go into deciding the price you pay for auto insurance, however, you should find it much easier to read the market and use it to your advantage. This article should give you a basic grounding, but whole books have been written on the subject – it's up to you how much you want to learn.

The most basic thing you need to understand is that insurance companies don't decide premiums based on how much they like you, or how much they think you can afford. Insurance is based on one thing, and one thing alone: risk. Every time the insurance company has to pay out for an accident, they keep a record of the amount, and every other factor they can find – the make, age and model of the car, the age and gender of the driver, where they live, how long they have had a license, and so on. There are hundreds of factors.

From this, the insurance companies can build up what is called a 'risk profile'. This allows them to work out the risk that they will have to pay out to any given person, and how much they would be likely to have to pay, based entirely on past experience. This is why a newly-qualified male driver in his twenties driving a sporty car has to pay so much to get insured – the statistics show that this group is by far the most likely to have an accident.

Once you understand this system, you can use it to your advantage. Obviously you can't change who you are, but you can change your car. The make, model and age of your car are three quite important factors in your risk profile, and they're all open to you to change. It is not difficult to use onlineinsurance quotation tools to find out which cars are pricey in insurance terms, and which ones are cheaper, and use this to help you make buying decisions.

Deciding to consider refinancing of mortgage for home loan is a major determination. Next key issue involved is to find ways to get profitable quotes for mortgage from banks. A thorough research of prevailing market rates is essential to obtain competitive quote from mortgage firms. Being familiar with current trends enables one stand a better chance of bargaining for lower interest charges. Mortgage rates usually increase or decrease in accordance with securities in Wall Street. A careful overview of market trends helps one save considerably on interests.

Comparing different loan schemes from a particular mortgage vendor and also form different vendors would facilitate one to choose the most profitable scheme. Among major tools available in market for evaluating dissimilar loans programs is the Annual Percentage Rate (APR). Laws of the state make it mandatory to expressively disclose APR while marketing their mortgage rates. This is for the benefit of borrower and to prevent them from falling prey to lower advertised rates, and find out if there are any hidden fees and upfront costs involved later.

Personal meeting with lenders, bank officials' and mortgage professionals' help in getting a competitive interest quote for your loan. Being well prepared with entire documentary evidence in support of your financial situation before meeting the people at bank enhances chances of receiving lower interests. Presenting documents to support your favorable credit history would tempt bank managers to provide you with lucrative mortgage quotes. Papers essential to obtain fast and lucrative loans rates include:

Verification of employment status and proof of income sources.

Previous paid credit card bills and other similar statements to show history of genuine payments in past.
Purchase contract of the house if it is available.

Bank details such as address of bank and your account numbers are important. Also previous 2-3 months statement of current and savings account are required.

Tax returns of last two years provide excellent proof of your financial position and hence should always be carried along while visiting the mortgage professional.

Entire information about other existing debt like car loans, student loans, retail credit cards or furniture loans, if any are required to acquire mortgage deal.

Presenting any gift vouchers received from relatives and friends would encourage bank managers to have increased faith in your paying capabilities. Such gift letters ensure that money acquired through gifts belongs to the recipient and the recipient does not have any liability on such financial assets.

Self-employed individuals may present their previous year's balance sheets and other tax statements.

Another good deal is about initially locking the specific rate of interest at time of proposal that would be charged. The process of loan approval might take some time and during such a time interval there might be fluctuation in rates of interest. Getting mortgage quote fixed at time of application relieves one from falling prey to chances of higher charges being imposed at time of loan approval.

Interest rates charged by bank also depend upon factors as amount of loan required, time period of loan, down payment, discount points, adjustable rates, closing stocks and so on. What's the easiest way to kill a great ad campaign before it even begins? Take it too seriously. Advertising is not rocket science. You shouldn't need a degree in the physical sciences to create or understand an ad.

And you should never, ever, under any circumstances, kill an ad because it is not literal enough. On the contrary, if you find your ads are too literal, you should destroy them all and start fresh.
Are Volkswagens flawed pieces of junk? No, but an ad with the headline "Lemon" gets your attention, doesn't it? It makes you want to read the story, which goes on to explain how the particular car shown in the ad would never be driven because VW cares so much it weeds out the lemons so you never get a bad car. Think what an opportunity would have been missed if the folks at Volkswagen had taken that headline too literally.

Think about it from this angle. Why do people read an ad or watch a commercial? The majority do so because they find them entertaining and informative. If your ads are all information and no entertainment, you've wasted your budget.

This is not to say that an ad should be created purely for entertainment purposes. Again, a great ad is both entertaining and informative. The entertainment value should be derived from a feature of your product or brand. In other words, what you're selling should be the star of the show. Sounds simple enough, but it is often hard to strike the right balance. That's what makes advertising so fun.

How much information does your audience really need? What kind of story will they find entertaining? These are questions that should be asked and answered early on so that when you finally are presented with an ad or a campaign, you can judge the work according to these preordained guidelines.

A good campaign will reach your target audience and talk to them on a personal level. This has a valuable effect on your sales and reputation. A great advertising campaign will do more than that. It will create a buzz outside of your target audience.
Apple Computer's "1984" commercial ran only once. But it is still one of the most talked about commercials because it was rebroadcast on every major news show and written about in every major newspaper for weeks and months. And none of this cost Apple anything more than a single TV buy.

It's worth noting that Apple's Super Bowl commercial helped make the company a household name and created unbelievable demand for the new Macintosh computer-yet the ad never showed the product or explained any detailsabout it.

BMW's Mini Cooper was one of the first cars to be introduced in the United States with no TV advertising. Blasphemy! Instead, they bolted the Minis to the roofs of SUVs and drove them around major cities. They created tongue-in-cheek billboards, interactive print ads and great guerrilla promotions. Most importantly, they created a waiting list of customers who couldn't wait to get a Mini.

Companies that think bigger become bigger. It's a self-fulfilling cycle. If you just think like a local operation, you might miss the opportunity to expand regionally, nationally, or even internationally. Your advertising campaign should reflect the direction of your company-even if you're not yet there.


of all the information I have written above, we can take some of the conclusions that:

The importance of a business with the support of the bank system.

Importance of the insurance system to maintain the integrity of an effort by all sorts of risks that are beyond our estimates.

Sometimes a good quality product with no need for a mediation of advertising for entry into local markets or international trade, even with a good quality product can be automatically lifted its price in world capital markets.

Needs to know that the rising and falling earnings and investments from insurance and banking services from each country will greatly affect the stock market in currency trading, stocks, and securities.